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Gap Between Sellers and Buyers is Growing

Gap Between Sellers and Buyers is Growing
The average buyer budget was 97,500 euros

The average buyer budget was 97,500 euros

According to a recent report from pisos.com, the gap between property prices and buyers’ expectations in Spain is growing. In 2018, the average price of properties for sale was 133,760 euros, while the average budget for buyers was 97,500. This is a difference of 36,260 euros and is 7,370 euros more than the gap seen in 2017.

Although the average price of Spanish property for sale fell by 5% compared to 2017, the gap has still grown. Ferran Font, director of studies at pisos.com, says “housing is less accessible due to the imbalance between prices which were moving upwards, and salaries which are either frozen or have not increased at the same pace. This directly affects the level of savings and debt capacity.” He also states that the growing gap should be a “wake-up call“, although he stresses that as the housing market is localised, it is possible to find markets where the gap is smaller.

Autonomous Communities

Five autonomies saw buyers’ budgets reduced in 2018 (Aragón, Asturias, Castilla-La Mancha, Castilla y León and Extremadura), while two saw an increase (Canary Islands and Catalonia). The highest average buyer budgets were seen in the Basque Country with an average of 247,500 euros. The lowest budgets were seen in Murcia, Extremadura, Comunidad Valenciana, Castilla y León, Castilla-La Mancha and Aragón (67,500 euros on average). The autonomies where supply and demand were closer were Navarra (-4%), País Vasco (-1%) and Castilla-La Mancha (4%). The greatest imbalances occurred in Madrid (54%), the Canary Islands (53%), and the Balearic Islands (49%).

Provinces

The amount of money that buyers are willing to invest fell in 14 provinces and increased in six. Guipuzcoans were the ones who offered the most: 277,500 euros on average. They were followed by buyers in Biscay (232,500 euros), the Balearic Islands (172,500 euros) and Alava (172,500 euros). The biggest differences between prices and offers were seen in Alicante (57%), Madrid (54%) and Santa Cruz de Tenerife (53%).

 

Málaga Airport Had Busiest Year Ever in 2018

Málaga Airport handled over 19m passengers in 2018
Málaga Airport handled over 19m passengers in 2018

Málaga Airport had a record year in 2018

In terms of passenger numbers, 2018 was the busiest year in the history of Málaga Costa del Sol Airport. This is according to figures released by airport operator, AENA.

Beating 2017’s record, which fell slightly short of 19 million passengers, growth in both the domestic and international sectors brought 19,021,704 passengers through the airport. This beat 2017 by 2.1%.

Similarly, the number of flight operations increased by 3% over 2017, with a total of 141,313 flights.

The vast majority of travellers (18,948,716) moved on commercial flights. Of those, over 16 million were passengers on international connections with their origin or destination in a foreign city. This represents an increase of 0.6% over the previous year. This growth in passengers was matched by growth in the number of international flights which grew by 1.2% to 109,447 flights.

The remaining 2.7 million passengers moved with Spain’s borders on domestic connections, strengthening the market. In fact, the number of domestic passengers grew by 11.5%, compared to 2017. Additionally, the number of domestic flight operations increased by 13.5%, to reach 26,953 flights.

Looking further at the international passengers, the UK remained as the main source/destination, with 5.7 million passengers heading to or from UK airports. Germany (1,580,351), France (1,145,458) and the Netherlands (1,115,691) took the next three spots in the passenger rankings.

December

A little over 1.1 million passengers passed through Málaga Costa del Sol Airport in December, representing an increase of 10.6% over the same month in 2017. Of those passengers, 1,100,812 moved on commercial flights, reflecting an increase of 10.6%. Of those, 883,087 were travelling between Spain and foreign cities. There was also an increase in domestic travellers in December with 217,725 passengers, also a 10.6% increase.

In terms of flight numbers, Málaga handled 9,223 flights in December, an increase of 11.2% when compared to the same month last year.

The last two weekends of the month were the busiest. On Saturday 22nd, coinciding with the start of the Christmas holidays for many people, the airport handled its largest number of flights, with 384 landings/take-offs. A week later, on Sunday the 30th, the peak was reached for passenger number with 51,151 travellers passing through Málaga.

 

Increase in Home Mortgages in November

21,698 new home loans taken in November
21,698 new home mortgages taken in November

21,698 new home loans taken in November

The number of new mortgage loans taken out in November 2018 was 29,709, representing a fall of 1.6% year-on-year. The average amount of capital loaned was €167,486, reflecting an annual decrease of 4.4%.

In November, the number of new mortgage loans taken for the acquisition of a property increased by 2.6% year-on-year, to reach 23,181 loans. This was due in part to the increase in loans for the purchase of a residential property which increased by 3.5% to reach 21,698 loans, and also the decrease in loans for other types of property (-8.5%).

In the case of housing, the average capital borrowed was €133,812, representing an annual decrease of 1.8%.

The average amount of the mortgages taken for the purchase of other types of property in November was €136,954. This represents a 2.6% fall year-on-year.

The number of new loans taken to finance construction projects showed an annual decrease of 1.2%, standing at 596 operations, according to figures from the General Council of Notaries. The average amount of these loans reached €523,205, reflecting a year-on-year fall of 8%. The average amount of loans taken for the construction of a residential property fell by 18.7% to €258,880. In this case, there were 462 operations.

The percentage of home purchases which were financed through a mortgage stood at 45.9%. Additionally, in this type of purchase with financing, the average amount of the loan was 76.7% of the property value.

 

Housing Sales up 2.8% in November

42,150 homes were sold in November
42,150 homes were sold in November

42,150 homes were sold in November

According to the latest figures from the INE, there was 85,348 property sales in November, 4% more than in the same month of 2017. Of those, 42,150 related to the sale/purchase of housing.

86.5% of those sales were for urban properties, with 13.5% being rustic. In the case of urban properties, 57.1% were for housing purchases. In terms of buying and selling homes in Spain, November saw an annual increase of 2.8%. However, compared to October, there was a monthly fall of -3.2% in housing sales.

19.1% of the homes sold in November were new properties, with 80.9% being second-hand. These figures represent an increase in new home sales of 7.9%, and an increase of 1.6% for second-hand housing, when compared to November 2017. When compared to October, new home sales saw a slight increase of 0.9%, while sales of second-hand housing saw a monthly fall of -4.1%.

Autonomous Communities

In November, the total number of property transfers registered per 100,000 inhabitants reached its highest values in La Rioja (723), Castilla y León (718) and Valencia (610).

Madrid (21.7%), Cantabria (19.6%) and La Rioja (19.4%) saw the highest annual variation rates.

The lowest annual variations were seen in Aragón (-11.7%), the Balearic Islands (-6.0%) and Extremadura (-4.4%).

Looking only at sales of residential properties, the communities with the highest number of transactions per 100,000 inhabitants are Valencia (168), La Rioja (144) and Cantabria (128). In Andalucia, there were 7,950 sales/purchases, or 121 per 100,000 inhabitants.

The communities with the highest annual increases in the number of home sales in November are Cantabria (30.3%), La Rioja (28.8%) and Castilla-La Mancha (26.6%).

The Balearic Islands (-7.2%), Andalucía (-5.9%) and Extremadura (-5.0%) registered the lowest annual variation rates in November.

Housing Sales up 2.8% in November

Purchases/sales of housing by Autonomous Community

Rental Price Growth Slowed in 2018

Rental prices fell by 0.6% in Q4
Rental prices fell by 0.6% in Q4

Rental prices fell by 0.6% in Q4

The price increases of rental housing slowed in 2018 and ended the year with an interannual increase of 9.3%. Compare this to growth of 18.4% in 2017. This leaves the average square metre at 10.6 euros per month. The slowdown was caused in part by a fall in prices during Q4 when the average cost fell by 0.6%.

Head of studies at idealista, Fernando Encinar, says that “the numbers show what we have been saying: there is no rental bubble. Prices have risen across the country in 2018 but this growth is slower than in previous years. Additionally, the larger rental markets, like Barcelona and Madrid, usually set the trend which will be seen later in the rest of the country. In Barcelona, rental prices have fallen for the second consecutive year and in Madrid they have stabilised with a small annual increase of 4%, although the final months of the year saw falls.”

“In some areas there may still be tension in the prices, but it will be based on high demand that clashes with lower availability. But in general, we expect a moderation in prices.”

Autonomous Communities

All the communities registered higher prices than they did a year ago, except for Extremadura (-0.1%). The largest increase was seen in La Rioja, where owners are asking for 10.5% more than they did last year. Other significant increases were seen in Navarra (9.5%) and Cantabria (8.8%). Catalonia experienced the smallest increase with prices rising just 1.3%. Other communities to see rises below 5% were the Balearic Islands (2.9%), Murcia (4.2%) and Castilla y León (4.9%).

Madrid is the most expensive autonomy for rentals with an average cost per square metre of 15.1 euros per month. Catalonia follows with 14.6 euros p/m² per month. Following are the Balearic Islands and Euskadi, with averages of 12.9 euros and 11.8 euros p/m² per month, respectively.

The cheapest communities for monthly rental costs are Extremadura (4.1 euros p/m²), Castilla La Mancha (5.1 euros p/m²) and La Rioja (5.7 euros p/m²).

In Andalucia, rental costs ended 2018 with an annual increase of 8.5%. This puts the average cost per square metre at 8 euros per month.

Provinces

Only four provinces saw their rental costs fall in 2018. The most significant fall was seen in Tarragona, where prices fell by 2.7%. This was followed by falls in Badajoz (-2.2%), Ciudad Real (-0.9%) and Barcelona (-0.2%). The biggest increases were seen in Santa Cruz de Tenerife (14.5%), Burgos (13.7%) and Toledo (13.7%).

Barcelona is the most expensive province with an average cost per month of 15.8 euros p/m². This was followed by Madrid with 15.1 euros p/m², Guipúzcoa (13.9 euros p/m²) and Baleares (12.9 euros p/m²). Jaén and Cáceres are the cheapest provinces (3.9 euros p/m² and 4 euros p/m², respectively), followed by Ávila (4.2 euros p/m²) and Badajoz (4.2 euros p/m²).

The province of Malaga ended the year with a slight year-on-year increase of 4.3%, in spite of a monthly fall in December of -0.2%.